Lava inks JV with Easy Group for Egypt entry

The two companies signed a memorandum of understanding (MoU) that will enable Lava to start exporting its products to Egypt, while Easy Group will provide necessary support to promote and distribute products in the country.Gulveen Aulakh | ET Bureau | Updated: September 01, 2016, 17:05 IST

NEW DELHI: Indian handset maker Lava will begin selling its range of locally made phones and accessories in Egypt after it inked a joint venture with Easy Group, the company said Thursday.

The two companies signed a memorandum of understanding (MoU) that will enable Lava to start exporting its products to Egypt, while Easy Group will provide necessary support to promote and distribute products in the country.

“Our foray in Egypt is a step forward in that direction and we are very delighted to partner with Easy Group who shares our vision and values,” said Hari Om Rai, chairman at Lava. “The partnership is also a testimony to our focus on ‘Make in India’ initiative – In India for India and the World."

As part of the way forward plan, Lava will also explore opportunities to set manufacturing facilities and assembly units in Egypt, which will also help the company in exporting products to West Asia and North Africa. The company is already present in Nepal, Bangladesh, Sri Lanka and Thailand.

The partnership will create 2,000 direct and 5,000 indirect employment opportunities in the next six months and over 10,000 employment opportunities in the next five years. This partnership also aims at developing entrepreneurship opportunities through the joint venture’s unique distribution and service model.

Lava is strengthening its manufacturing in India to cater to both domestic and international markets, having earmarked an overall investment of Rs 2,615 crore for ramping up the existing manufacturing units along with setting up more manufacturing facilities to increase the overall production capacity to 216 million units a year in the next five to eight years.

The company is also working towards establishing a mobile phone design centre in India by the end of 2017.

Lava International clocked revenue of Rs 7,626 crore in 2015-16, up 23% over the previous year.

The company is also planning to expand its research and development unit in Bengaluru with investments of about Rs 200 crore.

The government’s Make in India programme has reaped massive benefits with 38 manufacturing units set up in the last one year, leading to locally made phones worth Rs 54,000 crore last year. The value of locally made phones is set to increase to Rs 94,000 crore by this fiscal end.

Lava is among the top five Indian mobile phone players and is also among the leading local manufacturers with an assembly plant in Noida and two more in the works, one again in Noida and another in Tirupathi.

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